Watch Out for These Medicare Enrollment Period Scams (2023)

Scammers are always looking for new opportunities to fool you, and Medicare’s annual enrollment period is no exception.

The Medicare annual enrollment period (AEP) lasts from October 15th to December 7th every year. During this time, you can change your Medicare Part D drug plan or Medicare Advantage plan.

Scammers are ready to convince you to give up your personal information, and their tactics are more realistic than ever. Here’s what to look for.

Scammers are always looking for new opportunities to fool you, and Medicare’s annual enrollment period is no exception.

The Medicare annual enrollment period (AEP) lasts from October 15th to December 7th every year. During this time, you can change your Medicare Part D drug plan or Medicare Advantage plan.

Scammers are ready to convince you to give up your personal information, and their tactics are more realistic than ever. Here’s what to look for.

What Scammers Want

When scammers get their hands on your personal information, they can use it to steal money from you or the Medicare program.

If they get your Medicare ID number or enough of your health plan information, they can:

• File fake claims
• Up-charge existing claims
• Get prescription drugs to sell illegally
• Sell your data to others (who could do any of the above)

And if they get your Social Security number or banking information, they can steal your money and even take out loans under your name.

It’s critical to be on the lookout for scammers! Here are a few common ways they scam people during Medicare open enrollment season.

Unsolicited Phone Calls

Any unsolicited phone call should be a warning sign that you need to keep your guard up.

Medicare sets rules about what sales agents can and can’t do and making unsolicited phone calls is a big no-no!

Unless you’re a current client, a licensed sales agent cannot call you with the goal of enrolling you in a new Part D or Medicare Advantage plan.

So, if a stranger calls you and says they have a great new Medicare plan that you need to enroll in, you can bet it’s a scam (or they are not following the marketing rules set by CMS and should be reported).

In addition, it’s likely a scam if the caller:

• Asks for any kind of payment ‍
• Offers a gift in exchange for your personal information
• Asks for quick action or immediate payment ‍
• Scares you by saying Medicare will discontinue your plan if you don’t re-enroll
• Says they can enroll you in a too-good-to-be-true plan, and they only need your personal information to begin

Unless your existing agent calls you, be on the lookout for signs of a scam and never give out your personal information over the phone to a stranger.

Anyone Who Asks for Sensitive Personal Information

Whether it’s a phone call, email, or website form, be very cautious about sharing sensitive information, such as your:

• Medicare ID number
• Social Security number
• Health plan information
• Bank account information

It’s OK to share your name, phone number, and email address, but hold onto your Medicare ID number and Social Security number!

Do not enter it into any website chats, emails, or forms – even if you are reaching out to customer service.

If it got into the wrong hands, you could be scammed.

Someone Offering a Plastic Card or a Card with a Chip

Medicare does not offer plastic cards or cards with a chip.

Medicare cards are made of paper and have your name, Medicare number, coverage information, and the start date of your coverage listed on it.

Prior to April 2018, Medicare cards had member's social security numbers on them, so, to minimize cases of identity theft, Medicare sent out new cards to everyone by April 2019. The new cards were paper cards and still are.

There are currently no plans to change to plastic cards or to add a chip.

So, if you receive a call claiming that Medicare is rolling out new, updated cards in 2024, don't fall for it. 

These scammers might say they need to double-check your address and may even offer some information they have about you to try and gain your trust, but it's all an attempt to get your Medicare number and use it for fraud.

Stay aware and don't be fooled by this scam.

Note: If you've lost your Medicare card, you can print out a replacement card online by logging into your account or by calling Medicare at 1-800-MEDICARE (1-800-633-4227).

Refund or Rebate Offer

Scammers promise rebates or refunds for recent medical expenses as a way of tricking members into giving them their Medicare number, or even bank account details.

They'll say that there has been a change in your plan so you're eligible for some money back – who wouldn't be happy about that?

While some Medicare Advantage plans offer legit ways to get money back like the Medicare Giveback Benefit, these are plan-specific and they aren't offered in all areas.

And no one would call you to offer this benefit; it would be communicated to you at the time of enrolling in your plan.

If you're ever unsure if you're eligible for a rebate or refund, you should confirm directly with your insurance provider or health care professional.

And when in doubt, you can always contact us at Sams/Hockaday to confirm as well.

Free Health Screening or Medical Supplies Offers

If someone offers you a free health screening and your doctor didn't order one, consider that a major red flag.

Genetic testing has become a favorite among Medicare scammers trying to get their hands on your personal information. They might also sweeten the deal with free medical supplies or prescription medications.

Be on alert if anyone calls to offer you something for free, and never give them your Medicare number.

Sadly, since it's all a scam, you'll never receive the medical supplies or testing you were promised, and your Medicare number could end up being used for fraud.

Threats to Cancel Your Medicare Coverage

Some scammers will pretend to be Medicare, and they’ll threaten to cancel your coverage unless you update your information.

This is always a scam because Medicare will never call you unless you first ask them to.

And anyone who calls and says you need to verify any sensitive personal information to activate a plan is also a scammer. When you get a call like this, hang up!

Unsolicited Text Messages

Many scammers are starting to make their way into your text messages. These SMS (text message) phishing attempts are now called “smishing.”

Just like licensed sales agents cannot make unsolicited phone calls, they also cannot send unsolicited texts.

If you don’t recognize who the text is from, it’s safe to ignore it. Do not reply if you’re unsure – a reply could alert the scammer that you’re active, and they will try harder to scam you.

Be extra cautious of texts from an unknown number that contain a link. Clicking the link could leave you vulnerable to fraud.

Any “Agent” Who Doesn’t Follow Your Scope of Appointment (SoA)

Any agent who plans to discuss Part D or Medicare Advantage plans with you – and assist with the enrollment – must first ask you to sign a Scope of Appointment (SoA) form. 

This simple form outlines what the agent can talk with you about during your meeting, and it’s required by Medicare.

If an agent talks about products not mentioned in your SoA – or they never asked for one – they are either a scammer or are not following the Medicare rules.

New for this enrollment period for 2024 plan enrollments, there must be 48 hours between the time an SoA is signed and the time of the appointment.

The only exceptions are walk-ins or those scheduled within 4 days of the close of the enrollment period.

Note: If an agent is not going to be paid a commission based on your enrollment, they do not need to ask for a Scope of Appointment. Some agents simply help their clients make an educated plan decision but choose not to get paid.

Anyone Who Suggests Medicare Prefers or Endorses a Plan

The Centers for Medicare & Medicaid Services (CMS) does not endorse or prefer any particular plan option.

If someone tries to convince you that Medicare endorses a specific plan, they're a scammer at worst and devious at best.

There is no "best" plan as everyone's needs, budget, and risk tolerance is different. Your agent should work with you to understand your current health, your budget, and how comfortable you are with certain out-of-pocket costs. That's exactly what the agents here at Sams/Hockaday do!

Anyone Violating Marketing Rules

There are different marketing rules and regulations set by the Centers for Medicare & Medicaid Services (CMS). Some rules have been around for a long time, and some are new for 2024 plan enrollments.

Here are some marketing violations you should be aware of:

• An insurance company cannot represent themselves as Medicare.
• You should not get any leaflets, flyers, or door hangars on your car or at home from any company you don't have an appointment with.
• An insurance agent cannot come back to your home unless you invite them, and you set a date and time in advance (clarified for 2024).
• All marketing, sales, and enrollment calls must be recorded (modified from all calls for 2024 enrollments).
• In almost all cases, your insurance agent must recite a new disclaimer, informing you that they do not represent all plans and you should call Medicare directly for information on all available plans. The disclaimer has been updated in 2024 to include a mention of contacting SHIP to get information about all your plan options.
• Third-party Medicare organizations will not be allowed to use the Medicare name or logo, including the Medicare card, in a misleading way (new for 2024).
• Insurance organizations cannot market "potential savings" by comparing them with the costs of people without insurance or costs that Medicare beneficiaries aren't actually responsible for (new for 2024).

You can learn more about the new marketing rules and how they affect your experience here.

Anyone Who Imposes Deadlines Not Related to AEP

Finally, anyone who imposes an enrollment deadline on you that's not October 15-December 7 is a scammer.

For example, they could say you only have until 3 pm today to enroll in a plan or your Medicare coverage will be cancelled. This is not true.

Everyone has until December 7th to make enrollment decisions about Part D and Medicare Advantage plans. Don’t fall for scammers who set their own time restraints or make you feel an unnecessary sense of urgency.

What to Do If You Think You've Been Scammed

If you suspect you've witnessed or been the victim of Medicare fraud, there are three ways you can report it:

• Call Medicare directly at 1-800-MEDICARE (1-800-633-4227)
• Call the fraud hotline of the Department of Health and Human Services Office of the Inspector General at 1-800-HHS-TIPS (1-800-447-8477)
• Report it online to the Office of Inspector General.

Conclusion

Medicare scammers are out there, and they’re going to take advantage of the Medicare annual enrollment period.

If you ever have any doubts or questions about a potential Medicare scam, call our office or your agent! We can help you determine what’s worth your attention and what should be ignored.